1. Field of Invention
This invention relates to methods for generating and/or distributing revenue when a user accesses a web portal or web-site. More specifically, the invention is directed to a business model and method for generating and distributing the Telecom and Internet revenue produced when a subscriber of a wireless carrier accesses a group of specialized services and applications through a web-site. The web-site carries the brand characteristics of the carrier, but is typically established by a separate entity.
2. Description of the Related Art
Two-way interactive mobile communication devices are among the fastest emerging communication devices. Such devices enable users to receive, collect, analyze, review and disseminate information as they travel or move about. The newer mobile devices combine voice, data, and personal digital assistant (PDA) functions into a single portable device that enables a user to place phone calls as well as access a myriad of public and enterprise information services from a business network or the Internet. These services or applications may be accessed through the mobile devices from anywhere at anytime, permitting a user to have enormous flexibility with regards to how and when they use the information available. This frees the user from the need to be physically co-located with the source of information or to have access to the more traditional means of accessing such information, e.g., a desktop or portable computer. The evolution of these mobile devices has been fueled by the demand for immediate access to information and has been assisted by the convergence of computing and communications technologies.
The services for the mobile devices provided by service providers (e.g., wireless network operators (carriers) working with applications developers) are based on the production and dissemination of data, including voice and messages, over wireless communication networks. Providers offer multiple services through the mobile devices, including timed delivery of previously subscribed-to information, user accessible customer care (customer service), and customized group communications.
However, there are also other types of application programs that wireless device users may desire to have access to in their efforts to obtain and manage the information available from the Internet and other sources. These applications include both system-oriented applications (electronic mail, account management features, configuration of available features, etc.) and applications that enable a specific type or form of information to be accessed and processed. Other desirable applications include those that enable some form of electronic commerce to be carried out over a wireless network (direction finding, banking, credit checking, real estate searches, location of and purchases of goods, etc.). Thus, it is desirable for wireless carriers to have a means for providing their subscribers with access to such services and applications, especially those that are specifically directed to and tailored for users of mobile devices.
One method of enabling a user to have access to a multitude of services and applications is through what is termed a xe2x80x9cweb portalxe2x80x9d, i.e. an Internet web-site or pages that presents a user with a set of links to pages for services or applications. The links may be grouped or organized according to topic, function, or type of service offered. In this respect, the web-site or portal provides a collection of applications which offers the benefits of a centralized and highly integrated Internet site designed to serve the user""s needs. The web-site or portal operator (the entity that manages and controls the set of links made available at the site) is able to generate revenue by selling advertising space on the site home page. These features make portal operation a potentially lucrative form of business, as well as a method of establishing and/or maintaining brand strength.
However, in order to function as a portal operator, a company requires access to financial and employee resources, and to content and applications for linking to the portal site. Typically, at least some of the content or applications will be developed internally, while others will be obtained by paying fees to the source(s) of the content or applications. Furthermore, the employee or human capital required is of a specialized nature, in that it must be familiar with the Internet environment, relevant cycle times, advertising, marketing, sales, and customer service requirements, and the prevailing business environment. These requirements are difficult to satisfy for Internet based companies, and even more so for businesses which are not used to operating in such an environment.
The enormous financial rewards that can be obtained by operating an Internet portal make such a venture an attractive option for many companies. Such companies desire to participate in the Internet economy, but may prefer not, or be unable to make the up front investments needed to set up and operate their own portal. At the same time, these companies do not want to see their customers being drawn to a portal that offers services or applications that compete with their own. These companies desire to establish an Internet presence that can be a source of revenue, a platform for launching additional services or features, and a method of reinforcing their brand strength.
On the other hand, a company capable of setting up and operating a portal may not have the financial resources required to engage in the advertising, marketing, and sales activities needed to attract enough customers to the portal to make it a reliable source of revenue. This process of acquiring and retaining users is an important aspect of the success of any Internet based business and typically requires a set of skills different from those involved in developing Internet sites. In addition, building up a customer base typically requires a substantial amount of time, a situation that may not be compatible with the relatively fast time cycles involved in the Internet economy.
What is desired is a method for generating revenue from users accessing an Internet web portal or site, without requiring the up front capital and time commitments typically required to establish and operate a portal.
It is also desired to have a method for enabling a wireless network operator (i.e., a wireless carrier) to reinforce brand strength by operating an Internet web portal for the carrier""s subscribers, with the portal providing access to services and applications tailored to users of wireless communications devices. Such a portal may be used to reduce the churn rate of a carrier""s subscribers as they seek access to new services and applications, and to attract new subscribers to the carrier""s services.
It is also desired to have a method for generating revenue from customers accessing an Internet web portal and utilizing a wireless network to use services and applications linked to that portal, without having to make the typical investments to acquire subscribers to the wireless carrier whose brand is associated with the portal.
The present invention is directed to a business model and method for generating and/or distributing Telecom and Internet revenue between a wireless network operator and an Internet Partner company. The inventive business model includes an Internet web-site for the carrier""s subscribers, with the web-site being developed and operated by the Internet partner. The web-site features applications and services directed to users of mobile wireless communications devices. The services and applications are optimized for such users in terms of the information that is made available, the data processing methods, and the user interfaces. The services and applications are intended to result in increased use of the wireless network. The inventive model may include a portal or web-site for each of one or more carriers, where the portals are branded for the respective companies and accessible by the subscribers of the respective companies.
The invention provides incentives to increase network usage and conduct transactions that generate value and revenue for both the wireless network operator and the Internet Partner. Incentives exist for subscribers of the network operator to utilize the network and participate in transactions because they are provided with access to a desirable set of services and applications that are developed and optimized for users of wireless devices. The model also provides incentives for xe2x80x9cdownstreamxe2x80x9d companies to enter into relationships with the Internet Partner to permit customers of those companies to have access to the services and applications that are made available on the web-site, since such companies can share in the revenue generated from that access. Thus, the inventive model provides benefits for the network operator, the subscribers to that network, the Internet Partner, and to the downstream companies.
The revenue generated by the inventive business model may be generally classified as either Telecom or Internet derived revenue. These revenue streams result from the creation of both Telecom and Internet Value from the users of the web-site, with that value being translated into revenue that is shared between the wireless network operator(s) and the Internet Partner company (and also the downstream companies, if such are present). The wireless network provides a group of users that use the network to access a branded or co-branded web-site that contains services and applications tailored to users of such devices. The web-site is provided by the Internet partner and generates network-derived revenue (or supports existing levels of use) when users utilize the network to access the services or applications. The web-site thus provides Telecom Value to the wireless carrier because it encourages subscribers to maintain and hopefully increase their usage of the network. A payment for this value, or a portion of the web-site generated Telecom revenue may be provided to the Internet Partner since they provided an incentive for the subscribers to increase their use of the network. Customers of the downstream companies having access to the web-site will also increase use of the network by using the services and applications available at the site.
The services and applications available through the web-site generate Internet Value for the Internet Partner, in the form of advertising revenue, sponsor revenue, placement fees, fees from transactions (xe2x80x9ce-commercexe2x80x9d) engaged in by the users, or some combination of such fees. A portion of this web-site generated Internet Value may be provided to the wireless carrier since they have provided the customer base responsible for generating the Internet Value. Internet Value generated by customers of the downstream companies may be distributed between the Internet Partner and those companies in some form of revenue sharing.
The Internet Partner provided web-site enables a wireless carrier to offer its subscribers specially tailored services and applications without some or all of the up front capital costs associated with developing those services and applications, or of establishing a portal. This is accomplished in a manner that maintains the brand strength of the carrier. The portal or web-site may also be co-branded to establish brand recognition for the Internet Partner.
One benefit of the inventive model is that the Internet Partner is able to establish a branded or co-branded web-site for multiple carriers, and thus receive revenue derived from a plurality of customer groups without the need to expend resources on acquiring and retaining those customers. As a consequence of providing access to an aggregation of groups of customers or subscribers, advertising revenues for services or applications common to multiple web-sites can be higher than for advertisements targeted at smaller customer groups. In addition, since the services and applications are tailored to the category of users accessing the web-site(s), the advertising rates may be higher as a result of the availability of a targeted audience. This situation places the Internet Partner in a position to provide access to services and applications for a large number of potential customers and generate revenue from companies willing to pay a fee for that access. The Internet Partner is also able to benefit by serving as a gateway for the customers of the downstream companies desiring access to the wireless device directed services and applications.
From the perspective of the wireless carriers whose brand is on the web-sites or portals, the inventive model provides entry into the Internet economy without some or all of the normally associated costs. It also provides the carriers with a means of reducing customer churn rates and a platform for offering services related to the carrier""s core business. The web-site and its associated services and applications can be used to acquire new customers for the carrier whose brand is on the portal. As noted, the services and applications accessible through the web-site will also increase the subscriber""s use of the carrier""s wireless network, and in some cases will be responsible for generating additional carrier revenue.